Nigeria’s ongoing economic reforms are beginning to deliver positive results, with United Capital Plc expressing confidence that the Central Bank of Nigeria’s (CBN) policy measures are strengthening the naira, restoring investor confidence, and creating a more stable financial market. Speaking during the maiden United Capital Investor Relations Connect in Lagos, the company’s Group Chief Executive Officer, Peter Ashade, said the reforms are gradually reshaping the country’s economic structure and laying the foundation for long-term growth. He noted that Nigeria’s recent recognition as one of the world’s best-performing stock markets in dollar terms reflects growing investor optimism and renewed confidence in the economy.
Ashade encouraged investors to focus on opportunities emerging from the country’s economic transition rather than dwelling on existing challenges. According to him, reforms aimed at correcting long-standing structural imbalances are unlocking investment prospects across several sectors. He stressed that those willing to take strategic positions now could benefit significantly as the economy continues to improve. His remarks come at a time when both local and foreign investors are closely monitoring Nigeria’s reform agenda and the direction of monetary policy.
Adding to the positive outlook, United Capital’s Chief Economist, Ayodele Akinwunmi, projected that the naira could strengthen to ₦1,360 per US dollar by the end of 2026. He explained that increased local refining capacity is reducing Nigeria’s dependence on imported petroleum products, significantly lowering demand for foreign exchange. According to Akinwunmi, the basic principles of demand and supply suggest that reduced pressure on the foreign exchange market will naturally support the appreciation of the naira. He also praised government efforts to discourage raw material exports, saying policies that encourage local processing and manufacturing could generate more jobs, increase value addition, and stimulate sustainable economic growth.
Beyond the domestic market, United Capital reaffirmed its commitment to expanding across Africa despite the risks associated with regional growth. Akinwunmi acknowledged that entering new markets presents challenges but maintained that careful research, disciplined risk management, and a long-term investment strategy have positioned the company for success. Group Chief Finance Officer Shedrack Onakpoma also revealed that the company is retaining part of its earnings—including its 30 kobo interim dividend—to finance strategic expansion initiatives aimed at delivering stronger long-term returns for shareholders.
The company’s leadership also highlighted governance, innovation, and human capital as the pillars driving its continued growth. Managing Director of United Capital Asset Management, Odiri Oginni, said the firm is investing heavily in new products, market expansion, and stronger governance structures to remain competitive in an evolving financial landscape. The optimism comes on the heels of an impressive financial performance, with United Capital reporting an 80 percent increase in profit before tax to ₦24.78 billion for the first half of 2026, while profit after tax climbed 77 percent to ₦21.10 billion, underscoring the firm’s resilience and confidence in Nigeria’s improving economic outlook.
source: Punch
